Question: one answer per quesiton is corrct , which? say number and answer q: A company has an 12% return on capital employed on capital resources
one answer per quesiton is corrct , which? say number and answer
q:
A company has an 12% return on capital employed on capital resources of 600,000. If the company has a net profit margin of 8%, what are its sales?
Group of answer choices
600,000
72,000
900,000
828,000
q:
A furniture retailer sells goods to a customer for 80,000 on 1 January 2020 Delivery will take place immediately and the company has given the customer an interest-free credit period of 36 months. Discount rate is 6%.
How much revenue is recognized for the year-end31 Dec 2020.
Group of answer choices
75,472
67,169
71,200
80,000
q:
A Ltd sells computer software to B Ltd on 1 Jul 20X8 for 800,000, a price which includes the provision of a support service for 2 years.
A Ltd sells this software to other customers without the support service for 700,000 and has other service contracts providing similar support at a price of 150,000 per annum.
Identify revenue in relation to support service only for the year ended 31 December 20X8 according to IFRS 15 Revenue from Contracts with Customers?
Group of answer choices
240,000
60,000
329,411
120,000
q:
A television manufacturer offers a warranty on its products at no cost to the customer. During the year to 31 December, sales made evenly throughout the year, amounted to 50 million.
Past experience has been that around 10% of items sold are returned for repair under warranty and that this costs, on average, 5% of the sales price.
How should the manufacturer report its obligation for remedying manufactured defects as at 31 December?
Group of answer choices
Provision of 250,000
Provision of 5,000,000
Receivable of 250,000
Provision of 2,500,000
q:
A company has a gross profit ratio of 40%. The trade receivablescollection period for the company has been calculated at 53 days. If the actual gross profit earned was 480,000, what were the trade receivables?
Group of answer choices
69,698
174,247
104,548
116,164
q:
Which of the following events which took place between the end of a company's reporting period of 31 December and the date the financial statements were approved for issue to shareholders, would be treated as anon-adjusting event?
Group of answer choices
The bankruptcy of a customer whose debt was included within trade receivables
The announcement of a major restructuring plan
The discovery of a material error in the addition of the company's inventory
The value of an asset destroyed in a fire before the end of the reporting period is confirmed by an insurance company
q:
The directors of a company with a 31 December 2019 year end declare dividends on 15 January 2020 of 2,500,000. If the financial statements are approved for issue on 26 March 2020, how should these dividends be accounted for in the accounts to 31 December 2019?
Group of answer choices
treated as a non-adjusting event and disclosed in a note to the accounts
treated as an adjusting event and recognized as a liability
treated as a non-adjusting event and recognized as a liability
Neither recognized nor disclosed
q:
1. The second step in the revenue recognition process is to identify the separate performance obligations in the contract.
2. A contract liability (i.e deferred revenue) is a company's obligation to transfer goods or services to a customer for which the company has already received consideration from the customer.
State whether above statement are true or false.
Group of answer choices
1- true 2 - true
1- false 2 - false
1- false 2 - true
1- true 2 - false
q:
The first step in the interpretation process should be:
Group of answer choices
A review of the auditors report
The calculation of as many ratios as possible
Vertical Analysis of Financial Statements
A general overview of the financial statements to be analysed
q:
The following information is available about two companies, A Ltd and B Ltd.
| A Ltd
| B Ltd
| |
| Sales | 2,000 | 2,000 |
| Cost of sales | 1,000 | 500 |
| Trade receivable (year end) | 250 | 150 |
Which of the following statements is correct in making a comparison of company A with companyB?
Group of answer choices
Company A has the higher gross profit margin percentage and the shorter trade receivables settlement period
Company A has the lower gross profit margin percentage and the longer trade receivables settlement period
Company A has the higher gross profit margin percentage and the longer trade receivables settlement period
Company A has the lower gross profit margin percentage and the shorter trade receivables settlement period
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